Having a child is a traumatic experience in every sense of the word. So, the last thing on your mind, particularly if you are a new parent, is their finances. They are only tiny – why do they need money?! The truth is that by the time they grow up, it is essential that they have the foundations to lead their life. As a parent, it is your job to make this happen, which is why thinking about their financial future is important. Thankfully, it isn’t as hard or as complicated as it sounds as long as you take baby steps.
To help, this post has come up with a few tips that should come in handy. Good luck!
Save For University
Even though there are loans and grants available, studies show that they cripple most students. Anyway, you don’t have to be a financial advisor to understand that £9,000 a year for a three-year course is a lot of money. The catch 22 is that every mum and dad wants their children to go to the best schools and get the best education. A simple solution, then, is to save for their university fees as people do across the pond. Even if you don’t have the full amount, it will take considerable pressure off their small shoulders.
Open Up An ISA Account
The trick to saving money is to do it over an extended period. That way, most people can put away a small amount that will increase by the time their child reaches maturity. So, opening up an ISA as soon as possible is always a good idea. Plus, it isn’t only parents that like to contribute because aunties, uncles and grandparents all have designs on helping out. Why an ISA? It’s because of the potential benefits. Usually, a certain amount is tax-free and it has a higher interest rate too.
Create A Will
Parents hate the idea of contemplating their own mortality because it is depressing. However, it is a necessary part of being parents because you need to be sure they will be comfortable should anything happen. Not to be cynical, but it is always better to have the will in writing as you never know who will try their luck. Once it is completed, there is no reason to worry about the kids you have now and any that turn up in the future.
Teach Them The Value Of Money
One of the best ways to ensure they have money is to teach them to treat it with respect. People that have zero regard for money and what it can do are the ones that splash the cash without any regard. Yes, your kids might have a good time, yet it won’t happen for a long time. By teaching them that they have to work hard for money and spend it wisely, they should never misuse what they have. If they don’t understand its value, they will never be comfortable.
Although it is a long way off, kids grow up fast and the scenario will raise its head quicker than you can imagine.